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The Political Economy of the "National Minimum Wage Institution"

Author

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  • Petrakis, E.
  • Vlassis, M.

Abstract

Whilst their products are substituable for the consumer, there exist technological asymmetries across the unionized sectors of an economy. There are high-tech as well as low-tech sectors. We show, that, due to those asymmetries in productivity, inter-sectoral minimum wage agreements may endogenously emerge, always being the medianvoter's most preferred outcome.

Suggested Citation

  • Petrakis, E. & Vlassis, M., 1999. "The Political Economy of the "National Minimum Wage Institution"," DEOS Working Papers 0099-10, Athens University of Economics and Business.
    • Handle: RePEc:aue:wpaper:0099-10
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    Keywords

    MINIMUM WAGE ; WORKERS' REPRESENTATION ; ECONOMIC POLICY;
    All these keywords.

    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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